Leases

3 Months Ended

Jan. 31, 2021

The Company has operating lease arrangements for office space, data center, equipment and other corporate assets. These leases have various expiration dates through December 31, 2040, some of which include options to extend the leases for up to 10 years. Because the Company is not reasonably certain to exercise these renewal options, the options are not considered in determining the lease term and associated potential option payments are excluded from lease payments.

The components of the Company’s lease expense during the period presented are as follows:


	Three Months Ended January 31,
	2021		2020
	(in thousands)
Operating lease expense (1)	$	23,626	$	23,201

Variable lease expense (2)	1,335		942
Total lease expense	$	24,961	$	24,143

(1) Operating lease expense includes immaterial amounts of short-term leases, net of sublease income.

(2) Variable lease expense includes payments to lessors that are not fixed or determinable at lease commencement date. These payments primarily consist of maintenance, property taxes, insurance and variable indexed based payments.

Supplemental cash flow information during the period presented is as follows:


	Three Months Ended January 31,
	2021		2020
	(in thousands)
Cash paid for amounts included in the measurement of operating lease liabilities	$	20,644	$	16,204
ROU assets obtained in exchange for operating lease liabilities	$	15,635	$	4,775

Lease term and discount rate information related to the Company’s operating leases as of the end of the period presented are as follows:


	January 31, 2021		October 31, 2020
Weighted-average remaining lease term (in years)	8.40		8.62
Weighted-average discount rate	2.55	%	2.56	%

The following represents the maturities of the Company’s future lease payments due under operating leases as of January 31, 2021:


	Lease Payments
Fiscal year	(in thousands)
Remainder of fiscal 2021	$	63,327
2022	84,525
2023	68,615
2024	62,975
2025	54,961
Thereafter	261,904
Total future minimum lease payments	596,307
Less: Imputed interest	63,658
Total lease liabilities	$	532,649

As of January 31, 2021, the Company has additional operating leases for facilities that have not yet commenced with future undiscounted lease payments of $61.5 million. These operating leases may commence in March 2021, with lease terms between 5.0 years and 9.0 years.

As of October 31, 2020, the maturities of the Company’s future lease payments due under operating leases as follows:


	Lease Payments
	(in thousands)
Fiscal year
2021	$	84,534
2022	79,886
2023	64,073
2024	59,751
2025	53,280
Thereafter	259,969
Total future minimum lease payments	601,493
Less: Imputed interest	65,909
Total lease liabilities	$	535,584

In addition, certain facilities owned by the Company were leased to third parties under non-cancellable operating lease agreements. These leases have annual escalating payments and have expiration dates through March 31, 2031 in accordance with the terms and conditions of the existing agreement. The lease payments including sublease income due to the Company as of January 31, 2021 are as follows:


	Lease Payments
Fiscal year	(in thousands)
Remainder of fiscal 2021	$	8,254
2022	15,649
2023	14,953
2024	11,179
2025	6,375
Thereafter	38,032
Total	$	94,442